CERN Stock Overview
Cerner Corporation, together with its subsidiaries, provides health care information technology solutions and tech-enabled services in the United States and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$94.59|
|52 Week High||US$94.74|
|52 Week Low||US$69.08|
|1 Month Change||0.83%|
|3 Month Change||1.59%|
|1 Year Change||19.69%|
|3 Year Change||36.24%|
|5 Year Change||44.74%|
|Change since IPO||46,467.61%|
Recent News & Updates
Cerner: A Great Buy Today?
Oracle is planning to purchase Cerner and has begun the regulatory process in the UK - after having reached the expiration of the waiting period in U.S. Cerner recently reported an EPS beat and a revenue miss. Given all of these moving parts, the question is always this: is Cerner a buy, sell, or hold? This article describes a valuation approach to portfolio-building, reviews the factors affecting Cerner at the moment, and offers a valuation estimate to aid buy, hold, sell decision-making.
|CERN||US Healthcare Services||US Market|
Return vs Industry: CERN exceeded the US Healthcare Services industry which returned -40.1% over the past year.
Return vs Market: CERN exceeded the US Market which returned -13.2% over the past year.
|CERN Average Weekly Movement||0.4%|
|Healthcare Services Industry Average Movement||12.5%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||2.9%|
Stable Share Price: CERN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 0% a week.
Volatility Over Time: CERN's weekly volatility (0%) has been stable over the past year.
About the Company
Cerner Corporation, together with its subsidiaries, provides health care information technology solutions and tech-enabled services in the United States and internationally. It offers Cerner Millennium architecture, a person-centric computing framework, which includes clinical, financial, and management information systems that allow providers to access an individual’s electronic health record (EHR) at the point of care, and organizes and delivers information for physicians, nurses, laboratory technicians, pharmacists, front- and back-office professionals, and consumers. The company also provides HealtheIntent platform, a cloud-based platform to aggregate, transform, and reconcile data across the continuum of care; and CareAware, an EHR agnostic platform that facilitates connectivity of health care devices to EHRs.
Cerner Fundamentals Summary
|CERN fundamental statistics|
Is CERN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CERN income statement (TTM)|
|Cost of Revenue||US$1.01b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||2.00|
|Net Profit Margin||10.15%|
How did CERN perform over the long term?See historical performance and comparison
1.1%Current Dividend Yield
Is Cerner undervalued compared to its fair value and its price relative to the market?
Valuation Score 2/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CERN ($94.59) is trading below our estimate of fair value ($149.6)
Significantly Below Fair Value: CERN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CERN is poor value based on its Price-To-Earnings Ratio (47.2x) compared to the US Healthcare Services industry average (46.5x).
PE vs Market: CERN is poor value based on its Price-To-Earnings Ratio (47.2x) compared to the US market (14.9x).
Price to Earnings Growth Ratio
PEG Ratio: CERN is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: CERN is overvalued based on its Price-To-Book Ratio (7.1x) compared to the US Healthcare Services industry average (2x).
How is Cerner forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CERN's forecast earnings growth (17% per year) is above the savings rate (1.9%).
Earnings vs Market: CERN's earnings (17% per year) are forecast to grow faster than the US market (12.1% per year).
High Growth Earnings: CERN's earnings are forecast to grow, but not significantly.
Revenue vs Market: CERN's revenue (5.8% per year) is forecast to grow slower than the US market (7.7% per year).
High Growth Revenue: CERN's revenue (5.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CERN's Return on Equity is forecast to be high in 3 years time (39.2%)
How has Cerner performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CERN has a large one-off loss of $379.7M impacting its March 31 2022 financial results.
Growing Profit Margin: CERN's current net profit margins (10.2%) are lower than last year (14.7%).
Past Earnings Growth Analysis
Earnings Trend: CERN's earnings have declined by 4.3% per year over the past 5 years.
Accelerating Growth: CERN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CERN had negative earnings growth (-26.8%) over the past year, making it difficult to compare to the Healthcare Services industry average (9.5%).
Return on Equity
High ROE: CERN's Return on Equity (15.1%) is considered low.
How is Cerner's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: CERN's short term assets ($2.5B) exceed its short term liabilities ($1.4B).
Long Term Liabilities: CERN's short term assets ($2.5B) exceed its long term liabilities ($2.1B).
Debt to Equity History and Analysis
Debt Level: CERN's net debt to equity ratio (18.7%) is considered satisfactory.
Reducing Debt: CERN's debt to equity ratio has increased from 12.2% to 41.3% over the past 5 years.
Debt Coverage: CERN's debt is well covered by operating cash flow (105.2%).
Interest Coverage: CERN's interest payments on its debt are well covered by EBIT (64.1x coverage).
What is Cerner current dividend yield, its reliability and sustainability?
Dividend Score 2/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CERN's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: CERN's dividend (1.14%) is low compared to the top 25% of dividend payers in the US market (4.06%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, CERN has been paying a dividend for less than 10 years.
Growing Dividend: CERN's dividend payments have increased, but the company has only paid a dividend for 3 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (49.2%), CERN's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (28%), CERN's dividend payments are well covered by cash flows.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David Feinberg (59 yo)
Dr. David Todd Feinberg, M.D., MBA, has been Independent Director at Humana Inc. from March 2022. He serves as President, Chief Executive Officer, Managing Director and Director at Cerner Corporation since...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD21.18M) is above average for companies of similar size in the US market ($USD13.26M).
Compensation vs Earnings: Insufficient data to compare David's compensation with company performance.
Experienced Management: CERN's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Experienced Board: CERN's board of directors are considered experienced (3.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CERN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Cerner Corporation's employee growth, exchange listings and data sources
- Name: Cerner Corporation
- Ticker: CERN
- Exchange: NasdaqGS
- Founded: 1979
- Industry: Health Care Technology
- Sector: Healthcare
- Implied Market Cap: US$27.819b
- Shares outstanding: 294.10m
- Website: https://www.cerner.com
Number of Employees
- Cerner Corporation
- 2800 Rockcreek Parkway
- North Kansas City
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/25 00:00|
|End of Day Share Price||2022/05/25 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.